Trump signs order delaying tariffs on de minimis imports from China

Pause on duties for low-cost packages in place while US Commerce Department confirms procedures for collecting tariff revenues

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US President Donald Trump signed an executive order on Friday delaying the imposition of tariffs on imports from China that are valued at less than US$800. Photo: Reuters

Robert DelaneyandKhushboo Razdanin Washington

Published: 2:12am, 8 Feb 2025Updated: 6:18am, 8 Feb 2025

US President Donald Trump signed an executive order on Friday delaying tariffs on lower-value packages from China that enjoy the exemptions until the US Commerce Department can confirm that procedures and systems are in place to process packages and collect tariff revenue.

The “de minimis” exemption that allowed packages worth less than US$800 to enter the United States duty-free was removed as part of an executive order signed by Trump on February 1, which raised tariffs on Chinese imports by 10 per cent across the board.

The tax loophole played a big role in driving the growth of China’s cross-border e-commerce industry, as vendors sending small shipments directly to US consumers were able to avoid US import duties and customs checks.

Removing the exemption means that goods from Shein, Temu and other Chinese cross-border e-commerce players will now be subject to US duties on Chinese imports – which already stood at more than 20 per cent in some industries.

The new amendment – dated February 5 but signed on Friday – stipulates that de minimis treatment “cease to be available for such articles upon notification by the secretary of commerce to the president that adequate systems are in place to fully and expediently process and collect tariff revenue applicable”.

It was not immediately clear why Trump’s signature came two days after the amendment’s date, or why the Commerce Department would be involved given that US Customs and Border Protection is responsible for collecting tariffs.